Pestel analysis Political factors: * With the joining of the European Union – sponsorship for higher education related programs * Increase in demand for higher education – the number of students, around the world, grew by 300% and the number of universities have tripled in the last 30 years, therefore the demand for student accommodation has also increased * A university diploma is becoming more and more necessary in order to obtain a decent job as higher education is now “common” amongst the masses of people. The growth of the tourism sector is a great opportunity for the summer; Cluj-Napoca is one of the most important intellectual centres of Romania, as well as one of the country’s largest cities, historical and entertainment centres. * “Declaration of Bologna” – increase of competitiveness of higher education of the European Union State Members http://www. unibuc. ro/uploads_ro/images/96/STRATEGIE. pdf Economical factors: * Size of project – large project resulting in high costs * Growth in the value of the land and building Weak competition ( existent accommodation is in poor condition as it has been designed during the communism era and has not been dated since * Competitors : university campuses ( however insufficient and old), other private campuses, home lettings; during the summer motels constitute competition for the tourism sector * Highly-qualified workforce * Well-developed infrastructure * Attractiveness of Cluj-Napoca as a * Significant economic resources * Low cost of: – Materials Cheap labour * Maintenance http://www. studentie. ro/campus/CREDITE_PENTRU_STUDENTI_SI_VIITORI_STUDENTI/c-851-a-52079 http://www. studentie. ro/campus/AGENTIE_DE_CREDITE_PENTRU_VIITORII_STUDENTI/c-849-a-31953 Social factors: * Large increase in demand for higher education * Increase in the population of the town- during the academic year the population of the town increases with approximately 20% * Higher education perceived as a national value * Lack of adequate student accommodation Students prefer accommodation built specifically for their needs than alternative accommodation, mainly consisting of “living with a host” * At the moment it is still possible to obtain a license for building a structure of this sort in the centre of Cluj-Napoca, a trend that may change in the near future. * Proper student facilities that present student accommodation lack * Important academic centre * A high potential for innovation, development and research * A dynamic economic environment * Succesful past investments
Technological factors: * More efficient building compared with the majority of buildings present in the centre of Cluj-Napoca and around the universities which have generally been build decades and centuries ago for the “elite” and have not been designed to accommodate students. * Easier to maintain than the older buildings * Efficient design Environmental: * The weather in Cluj-Napoca is continental and does constitute a problem that could aggravate the corrosion process such as, for example, the oceanic weather in a series of coastal towns. Good geographical position * Project respects all the environmental laws and encourages clients to recycle http://www. cjnet. ro/cj/rgeografic. html The business environment The business environment is very favourable for such a business at this moment in time. To what concenrs the demographics of the city, Cluj-Napoca is a dynamic and fast expanding city which is due to become Romania`s technopolis, according to American magazine InformationWeek. http://www. informationweek. com/news/internet/showArticle. jhtml? rticleID=206103523&queryText=cluj As higher education becomes a trend for the masses http://www. unibuc. ro/uploads_ro/images/96/STRATEGIE. pdf in Europe and Cluj-Napoca being one of the largest academic cities in Romania and home to the countries largest University ( Babes Boloy) it would be common sense to expect the population to increase significantly particulary during the academic year. The target market for the bussines are the students which are a category of the population which is significantly increasing due to political, economical, social 2. 1 Company and service Summary
Domus student accommodation it is relatively centered positioned in the city of Cluj-Napoca and is in walking distance of all the universities. The closest beeing at only 270 m away and the furthest beeing at 2 km, while the majority of them beeing at less than 1 mile away. (see appendix 1) The building has 296 one room apartments with private kitchen and bathroom, fully-equipped and loundry room availeable at each floor. Student have the opportunity to book the room for theirown or share it with another person,this deviding the cost of the room in equal ways.
However the maximum number cannot exceed 2 students per room. In order to make easyer their adaptation in a new city we offer them the opportunity to personalise the room by offering them the opportunity to choose the colour of the wall painting for an extra ? 50. The option of choosing the colour of the walls can be selected when booking the room on the website. The booking must be made 15 days before the starting date of the contract, so everyting can be ready on time. The website also has a section which gives them the osibility to find people which are interested in shareing the room, so they can find the room mate that matches their expectations. The grand floor will be rented for a modern canteen and a bowling alley. Those businesses were chosen to facilitate student needs but are not restricted to the ocupants of the appartments. 2. 2 Company Ownership Domus student accommodation is a private limited company situated on Serpuitoare street in the cenrer of Cluj-Napoca. Maria Alexandra Tentis is the sole owner of the organisation and will be involved in the management of the company, directing its financial side. . 3 Start-up summary Maria Alexandra Tentis (owner) will contribute with an investment of ? 100,000 in cash and ? 200,000 the land where the appartments will be built. ? 3,717,082 representing 60%of the building construction and set up, will be acquired via government grants. The remaining expenses will be covered by a bank loan of ? 2,500,000 taken for 20 years with an interest of 11 % per year. The owner also took care of the research and development expense regarding the market and market conditions and the arhitectural plan and the auhorisation for construction of student apartments worth ? 0,000. http://www. dapnl-pd. ro/docpage. php? docid=25&pagno=1 http://www. eeff. ro/eeff-event-2010-03-17-bcr_b_zaman. pdf http://www. thisismoney. co. uk/loan-repayments-calculator Starting costs Initial expenses Legal ? 500 Oficce equipement ? 800 Brochures ? 600 Website? 900 Other (marketing)? 1,500 ? 4,300/month Money in bank as reserve for losses Mountly payrools during the start-up period: Utilities? 4,000 Salaries ? 3,700 ? 7,700/month Other regular mountly expensses during start-up period: Marketing ? 250 Insurance? 2,475 2,725/month Total mountly running spending during start-up period: ? 10,425/mount Other current assets Maintainance ? 2,000 ? 2,000 Long-term or fixed assets Land ? 200,000 Building ? 5,548,068 Equipement ? 647,068 ? 6,395,136 Total start-up requirements ? 6,411,861 Start-up Funding| | | Start-up Expenses to Fund| ? 4,300| Start-up Assets to Fund| ? 6,207,561| Total Funding Required| ? 6,211,861| | | Assets| | Non-cash Assets from Start-up| ? 6,395,136| Cash Requirements from Start-up| ? 12,425|
Total Assets| ? 6,407,561| | | | | Liabilities and Capital| | | | Liabilities| | Current Borrowing| ? 0| Long-term Liabilities| ? 2,500,000| Accounts Payable (Outstanding Bills)| ? 48,000| Other Current Liabilities (salaries)| ? 44,400| Total Liabilities| ? 2,592,400| | | Capital| | | | Planned Investment| | Maria Tentis| ? 100,000| Government grants| ? 3,717,082| Additional Investment Requirement| ? 0| Total Planned Investment| ? 3,817,082 | | | Loss at Start-up (Start-up Expenses)| (? 4,300)| Total Capital| ? 3,812,782| | | | |
Total Capital and Liabilities| ? 6,407,561| | | Total Funding| ? 6,411,861| https://www. bcr. ro/sPortal/sportal. portal? _urlType=action&LABEL_MAIN_zz=83079. 90201530851&LABEL_MAIN_pc=1&LABEL_MAIN_sh=5f0623cd4eb55bb4250e4a903b56e56e&cci=09002ee28036923f&desk=bcr_ro_0785&navigationId=021786849766301190000194&&popup_w_webc_url=Channels/Persoane_fizice/Credite/Destinatie_multipla/maxicredit_dobanzi_pg_Content. akp&popup_desk=bcr_ro_0785&otherPopup=1&_windowLabel=LABEL_POPUP_1 http://www. thisismoney. co. uk/loan-repayments-calculator